Land Rent is the insanity coming to an end?

[$short]

The high rent prices are crazy. With cash rent in the 60 to 70 dollar range and fertilizer prices around 90 bucks an ac it takes around 300 gross revenue or better to breakeven. Thats a lot of risk.

What range are guys using for canola prices next year when budgeting.

[blackpowder]

I agree, its very dangerous.
1 landlord explained his reasoning:
Current market value of land x bank interest. Like to know where he banks

[mbratrud]

Wow did this thread go on a tangent... I can't say I know anyone personally who was farmer of the year, I guess I hang out in the wrong circles... Hobby thanks for the insight maybe the rumour is true, I was questioning a rumour I know nothing about, and your participation I guess makes you part of the gossip circle. To be at the mercy of a landlord to ensure the survival of your farm is never a good idea. I can go down to the local dealership and buy a peice of equipment any day of the week, land is a different story, why would you sell it to buy machinary?

[freewheat]

$ short I'm using 14 dollars for my canola budget. We don't have dumb rents here yet thankfully, but there have been poor crops or no crops out here since 2004. Finally this year we grew one, but it wa below average. Rent is still 30-40 out here..

[hobbyfrmr]

Back to topic, cash rent in my area is $60/acre in a phone call, and if a land owner wants to apply themselves, make 3 phone calls, results would get close to $70/acre.

[mbratrud]

Freewheat - Glad to see the optimism, $14 Canola I sure hope your right!

[perfecho]

Personally have made more on farm/rec land by buying and selling than I ever did/would on farming it!

[newguy]

Feewheat. Budget canola at 11. Then if it is 12.50 you will be happy to get an extra buck fifty instead of sad you are down a buck fifty.

[SASKFARMER3]

Our genius who rented from a land company now works for (Canola Crusher in Saskatchewan) as the farm manager. Sorry me bad not suppose to mention that they rent the land because the Idiot couldn't make a go of it because he paid to much and owed to much. So high flying farmer now becomes farm Manager. AH ITS A NICE TITLE>

[freewheat]

The reason I'm budgeting 14 is because I
did a total production contract with Bunge
for 2012 for 14 bucks picked up act of
God. For High acid.